From a $4 billion enterprise in 1999 to a $191 billion behemoth in 2021, India’s IT sector has exploded. It also accounts for 8% of the country’s total GDP. However, we haven’t discussed the IT industry in our email thus far. So we decided to do something about it today.
“When America sneezes, the world catches a cold,” as the saying goes.
Well, it’s a phrase that gives you an idea of the US’s global influence— the impacts of globalization and all that.
However, India has its own version of the quote: “When America sneezes, India develops a cold.” India gets a fever when Europe sneezes alongside it.”
It’s also a nice way to characterize the Indian IT industry. Because we owe approximately 70% of our exports to two regions: the United States and Europe. As a result, when these regions experience a slump, Indian IT suffers as well.
When Covid-19 struck last year, for example, IT investors were on pins and needles.
Because the last global recession, which occurred in 2008, was not nice to anyone in the business. Before the financial crisis, IT companies’ revenues were increasing at a rate of 30% each year. Soon later, it plummeted to 15%. Companies all throughout the world were forced to slash costs and live on the bare essentials. While the IT industry is relatively recession-proof, there is still some uncertainty when circumstances are rough.
We wouldn’t blame you if you tried to draw connections between what happened in 2008 and what will happen in 2020. Because when worldwide lockdown became a thing, everyone feared the worse.
Here’s how it’s done:
- There will be obstacles on the digital front if you want to enable your workers to work remotely. And you’ll need someone to help you figure it out.
- Then there’s the cloud platform migration. Everyone on your team needs to be able to access all of the data on the go. According to Tata Consultancy Services (TCS), just 20% of large organizations were using the cloud prior to the pandemic. However, that number has already risen to about 35%.
- Then there’s the fact that as the world changed around them, many established players doubled down on IT — digital storefronts, digital payments, digital marketing, digital everything.
And it is here that Indian IT companies saw a huge opportunity. These individuals hope that everyone in the United States and Europe is interested in digital transformation. According to Gartner, global IT investment grew by barely 2.5 percent per year from 2012 to 20. However, in the following three years, that figure is predicted to rise by more than 9%.